What is cash on delivery and what are its advantages and disadvantages

What is cash on delivery and what are its advantages and disadvantages
What is cash on delivery and what are its advantages and disadvantages
Anonim

In our time, the popularity of online shopping is growing day by day. It is not surprising - after all, with the help of modern web technologies, you can conclude quite profitable deals and save time. At the same time, many potential buyers are afraid to fall for scammers and therefore are increasingly interested in what cash on delivery is and whether it makes sense to choose this payment method. They say that it is quite safe and very beneficial for both the customer and the merchant. Is it really? Let's try to figure it out.

what is cash on delivery
what is cash on delivery

What is cash on delivery?

The essence of this method is that the sender instructs the postal communication object to recover a certain amount from the addressee (recipient) after delivery and send it to the address indicated in the corresponding form. Moreover, both a state communications enterprise and any commercial organization, such as New Mail, can act as a courier. C. O. Dit is used, as a rule, for parcels and parcels with an assessment of the investment, i.e. valuable. Probably, many have already had a question: “Is it possible to send letters with it”? The answer is yes, but only if they have a declared value. Therefore, if the weight of the item does not exceed one hundred grams, it can be sent by a valuable letter and thus save some money on delivery services. Speaking about what cash on delivery is, it should be noted that the amount of evaluation of the parcel cannot be less than its value. All the necessary information is indicated on a special form for postal transfer, while for parcels sometimes there are double forms, on which you need to indicate both the data for the parcel and for the transfer of funds.

postage cash on delivery
postage cash on delivery

Benefits and disadvantages

Many buyers who have had time to try out what cash on delivery is in practice have already managed to make sure that this delivery method is very convenient and reliable for purchasing expensive items from new sellers who have not yet had time to prove themselves. After all, this way you can be sure that the money will not be lost and the goods will definitely come. At the same time, despite all the obvious advantages, it cannot be said that this method of sending will always be the best for both parties. The downside for the buyer is that the cost of receiving inevitably increases, since the rates for valuable postage are higher than for simple ones. In addition, you will still have to pay a commission for sending money to the seller. All this can so increase the total cost of the received goods,that it will become equal to the price in a regular store. Again, if you decide to place an order by cash on delivery, do not forget to check the purchase directly at the post office. It may well get caught by a rogue who will fill the inside of the parcel with various garbage that you will only find when you come home. Therefore, you should always remember that the name "cash on delivery" does not mean absolute certainty that the purchase will go smoothly. However, this example is more of a rare exception than a frequent occurrence. As for the seller, for him this delivery option is just an additional way to attract more potential buyers and earn trust. Unlike prepayment, the term for receiving funds can increase up to 14 days. And besides, there is always a chance that the buyer will suddenly change his mind and will not pick up his order. In this case, the sent goods can be returned only after a month, and you will have to put up with the shipping costs.

cash on delivery order
cash on delivery order

Output

Thus, cash on delivery justifies itself if the order is of great value to the buyer, and the seller is little known and cannot yet boast of a large number of positive reviews. That is, when guarantees are needed. Otherwise, if the purchase from such a seller is not the first time or the price of the goods is not too high, it will probably still be better to choose prepayment.

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